Much like its home country, Italian energy Eni (NYSE:E) needs to rethink its approach and restructure its operations. While the company has a valuable growth-oriented exploration and production business (centered on Africa), overall performance has been held back by a collection of structurally uncompetitive downstream operations. While valuation is close to attractive, Eni is a stock that will need some time to work out.
A Tough 2011 Breaks a Strong Streak Eni had built a reputation as a fairly reliable under-promise/over-deliver company that routinely delivered results slightly above expectations. Although that technically continued in the fourth quarter as adjusted income was 3% above expectations, it was a low-quality beat and underlying results actually missed most sell-side estimates by about 5%.
No comments:
Post a Comment